Canadian Dollar starts the week with a stronger bias

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar             1.2650-1.2750

Euro                     1.4850-1.4950

Sterling                1.7350-1.7450

The US Dollar Index is marginally weaker as stock markets recover from their lows of last week which was a tough one for the world's economy. A lot of the global data showed that most Western economies where in some form of slowdown as the Delta variant plays havoc with their economies. The focus for the stock market and US Dollar going forward will be on Fed Chair Powell's speech later in the week to the Jackson Hole Symposium where he is expected to touch on his plans for the US economy in light of the Delta strain slowing the economy. Market watchers will in particular be looking for any signs of when the Fed will start to taper their stimulus plan.

The Canadian Dollar starts the week with a stronger bias, on Friday USD.CAD reached a high of 1.2830 (0.7794) before it pulled back this morning to trade at 1.2715 (0.7865). The Loonie has benefitted overnight from a weaker US Dollar and a pullback higher for the price of oil which has been on a very tough run over the last few weeks. The Loonie also traded weaker on Friday as the Canadian June Retail Sales number disappointed traders as it came in higher than May but below market expectations. We may be seeing a slowing of the recovery in Canada as the election kicks into high gear which won't be very good for the governing Liberals, both the Conservatives and Liberals are running neck and neck so it will be interesting to see how the recovery influences the election campaign going forward.

Nothing on the calendar that will move the markets today, stocks are pointing higher on the opening so we may see the Loonie continue to recover a little as the day goes on.